This trade is a scalping trade where I get in and out of a trade within minutes after a news is released. I used a 5 min chart for analysis and entry. The news I was trading was US unemployment claims. The terrible mistake that I made was that I mistook the news release to be at 1pm (GMT) which was supposed to be at 130pm. Entered trade at 1:05pm after price broke below triangle as well as bollinger band.
Another mistake that I made was that the stop loss was placed on the other side of the triangle. It should have been placed above the triangle to confirm the breakout on the other direction. The trade proved to have gained a small profit if the stop loss was placed correctly.
Details of the trade:
| Currency Pair: | GBP/USD |
| Trade: | Short |
| Method: | Rapid |
| News (For Running Market Only): | Unemployment Claims |
| Global Stock Market: | Bearish |
| Timing of News Release (GMT): | 1:30pm |
| Date & Time of Entry (GMT): | 17/12/09 1:05pm |
| Entry Price: | 1.6096 |
| Critical Level: | PWP |
| Initial Stop Loss: | 1.6119 (23 pips) |
| Basis of Stop Loss: | The other side of triangle |
| Initial Target Profit: | 1.6036 (60 pips) |
| Basis of Initial Target Profit: | 60 pips |
| No. of contracts traded | 1 mini |
| Planned Risk-Reward Ratio: | 1:3 |
| Stop Adjustments: Price and Profits Protected | Nil |
| Exit Price: | 1.6119 (23 pips) |
| Exit Time (GMT): | 17/12/09 1:15pm |
| Reason for Exiting the Trade: | Stop loss triggered |
| Profit / Loss (Pips): | -23 pips |
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- Recording your trades
- Minimize loss = Position Sizing and Stop Loss Limit
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